Cosmopolitan Club vs The State Of Tamil Nadu & Ors

The Supreme Court addressed the liability of a members' club to pay sales tax under the Tamil Nadu General Sales Tax Act, 1959, for supplying food and drinks to its members. The Court emphasized that the relationship between the club and its members must be determined, specifically whether the club acts as an agent for its members, thus negating the existence of a sale. The Court remanded the matter to the Tribunal for factual determination regarding the nature of the transactions, considering amendments to Section 2(n) of the Act and the principle of mutuality.